Buy Activision on 'in-game' purchases: Analyst

Morgan Stanley initiated coverage of Activision Blizzard and Electronic Arts with overweight ratings, on the prospect in-game digital purchases will top expectations in the coming years.

"Initiate OW on ATVI/EA as we see both players driving the industry's digital shift away from 'units sold' to a model based on users, engagement, and digital monetization," analyst Brian Nowak wrote in a note to clients Friday.